Pensions and quitting: a test among competing explanations

Abstract

Multiple regression analysis of 402 unionized, public utility employees is used to examine the effects of a final-earnings pension plan and other human resource management programs on the willingness to engage in quit behaviours in response to problems as work. Consistent with expectations, employees facing higher expected losses under the pension plan are found less likely to quit. The willingness to quit is also found to be reduced by other factors that raise the cost of this action to the individual (e.g., compensation premia), where dispute resolution options are perceived to be more effective (e.g., voice) and where the current setting is viewed more favourably (e.g., under conditions of higher affective commitment and job satisfaction). implications for pension theory and research are discussed.